If your warehouse fulfillment services company is planning a new system implementation or significant upgrade, be sure to plan your activities with great care. The systems implemented in your warehouse can make or break your operations. As John Jantsch, small business marketing consultant and author of Duct Tape Marketing, states: “At its core, a fully functioning business is basically a set of systems and processes”. An unsuccessful system implementation may harm your immediate operations and cause a significant snowball effect of process issues, missed deliveries, and customer dissatisfaction.
Avoid the following pitfalls to improve your chance of a successful system implementation.
Lack of project management: A major systems implementation is not simply an IT project. All departments are impacted by a new system so get the input and cooperation of Subject Matter Experts across all areas of the business, coordinated by a dedicated Project Manager. Many new systems fail because companies don’t realistically plan for the project or effectively manage the designated implementation plan.
No evaluation of existing procedures: Rather than simply replicating your existing processes and systems, be sure to ask the following questions upfront: What parts of the operation can be removed to add efficiency? What new processes and procedures are required or on the nice-to-have list? The sooner the better to ask and answer these questions.
Minimal data conversion planning: Most warehouse management systems are data-driven so it is critical to build a solid plan for file and data table conversion (item SKUs, warehouse bin location schema, customer data, etc). Aim to convert as much data as possible via programming instead of manual copy-and-paste data update. Also determine upfront how much historical data needs to be converted to the new system.
Insufficient training: It is important to remember that the software vendor will only provide documentation about how the system works. The specifics of how the system operates within the framework of your business and all training materials needs to be developed in-house. A ‘train the trainer’ approach is commonly used and serves to create Subject Matter Experts of the new system.
Inadequate testing: Everything must be thoroughly tested. Involve key users from each functional area and run through all fulfillment processes in full. Create test scripts and use actual historical data in your test cases for authenticity. Test interfaces to other systems and all peripheral functionality such as reporting, printing, query creation, etc.
If you are looking for a warehouse fulfillment services company with a proven track record of successful system implementation and operation, contact Fulfillment America, Inc. to request further information and request a follow-up communication from us.
January through March are months of great opportunity for a fulfillment service company; holiday returns have been processed, consumer spending is generally down, and new marketing campaigns are often in the implementation phase. This makes January through March a great time to critically review and assess internal operations with a focus on keeping costs down and service levels up.
Some areas of focus for service level improvement and cost reduction.
Work to minimize employee turnover. In order to keep your best workers, clearly communicate your expectations of them and give them a chance to provide feedback. Create a workplace environment that makes people want to stay. It is particularly critical to motivate and keep good first-line managers who can motivate fellow employees, communicate change, and effectively manage a multilingual workforce with flexible schedules.- Maximize warehouse space and operational efficiencies. Avoid the significant expense of warehouse relocation by improving current space utilization and efficiencies. Try to change storage and work area configurations to postpone the need to move.
- Take the time to document or fine-tune the performance metrics of your fulfillment service company. It is critical in this data-driven environment to measure operational and financial performance against pre-defined benchmarks. Take the time to examine historical data and fine-tune those metrics so they become a standard and integral part of business operations. Effective performance metrics are both a benefit to company management but also a strong marketing plus for prospective clients.
- Take a critical look at company infrastructure and partnerships. Evaluate server and systems infrastructure to ensure there is adequate memory, bandwidth and security in place. Examine the terms, performance and costs associated with all partnerships – from freight carriers to packaging providers and office supply providers.
Use the first months of the New Year to sharpen your operations, reduce costs and gain a competitive advantage. For additional information about the fulfillment services offered by Fulfillment America, contact us for further information.
Order fulfillment services are one of the most frequently outsourced operations in the market today. Successful outsourcing can plan a huge role in controlling operational costs, but it is critical that valuable customer relationships are not jeopardized in the process. When evaluating the merits of one fulfillment service provider over another, there are several do's and don’ts to consider.
Order Fulfillment Do's
- Consider the warehousing capabilities of the provider. Simply put, an inadequate amount of square footage means that the fulfillment service may not be able to support the client’s inventory needs. If you expect future inventory growth, ask about additional warehouse space availability and the process and timing involved to increase capacity.
- Check which ordering methods the provider can process. Customers today require multiple options when it comes to submitting orders, ranging from traditional phone orders to real-time email and online orders. Ensure that your provider can process high-volume orders across multiple formats.
- Investigate the internal procedures used to process orders from receipt to delivery. Ask to see documented process to ensure the provider has the infrastructure and operational flow to provide acceptable order turnaround. Also ask how exceptions and outages are handled; problems will arise and it’s critical to know how your provider will respond.
- Think about location. Select an order fulfillment service provider that has facilities strategically located for your customer base.
Order Fulfillment Don’ts
- Never be afraid to ask questions and expect detailed answers in return. It is your right to know exactly how your fulfillment provider will increase efficiency and make your company shine in front of clients. If you only get vague responses to direct questions, you should move to the next candidate.
- Avoid order fulfillment services that do not have a well-defined process of accountability. You need to know what happens when inventory is lost, shipped in error, or is damaged while in storage. Inventory losses can make a significant dent in profits, easily offsetting the benefits of outsourcing. Never do business with any fulfillment service provider that cannot make specific and equitable commitments in handling these types of loss.
- Do not sign any service contracts until the provider has been checked for financial stability and a history of delivering quality service to its customers. An order fulfillment company may have a great operational strategy and provide all the right answers, but is not a good match if its business is on shaky financial ground or has a poor service reputation.
Keep in mind that customers don’t care if you outsource their orders for completion or not. They do care if their order is late or differs from what was ordered. If you choose to outsource your fulfillment services, candidly assess these do’s and don’ts before contracting with any service provider. To learn more about the proven track record and services provides by
Fulfillment America Inc,
contact us or submit an
online request for information.
In his recent WMS Guide blog “More Visibility, Fewer Silos”, ERP Analyst Michael Koploy argues that supply chain visibility is being hindered by a lack of transparency, inadequate data, and antiquated methods of ‘management by spreadsheet’. Koploy cites a May 2011 Capgemini study that found a significant 45% of polled supply chain executives consider supply chain visibility as their top initiative for 2011.
From the perspective of a fulfillment services company, Koploy’s view of the criticality of supply chain visibility is spot-on. He highlights three specific examples:
Better inventory management. More granular and real-time supply chain data enables tighter inventory control and an opportunity to reduce on-hand inventory and its associated cost.- Better procurement practices. Historical data and supplier performance data can help purchasers identify trends to optimize future buying decisions and supplier selection.
- Better logistic operations. System and data integration between a company, its suppliers, clients, and transportation partners is critical to allow all aspects of the supply chain to work smoothly together.
A good fulfillment company will track all aspects of its supply chain, from manufacturer to end customer. A great fulfillment company will identify potential problems in advance and have a quick and effective mitigation plan to address such problems as they occur.
Let’s consider the scenario of a production job requiring input materials from multiple suppliers. A single shipment of materials required to complete the production job is running late due to unforeseen circumstances not communicated to the fulfillment company. Whether this late shipment delays the entire production process or causes it to be paused mid-way due to inadequate inventory, not having material to complete a scheduled job is undoubtedly one of the worst scenarios for any fulfillment company. A stalled production job affects labor staffing, impacts other production schedules and, most importantly, may lead to missed client commitments.
Having accurate and real-time supply chain visibility would minimize the negative effect this late shipment in the following ways:
- An electronic data interchange (EDI) interface with the supplier allows visibility into the supplier’s delivery schedules so the fulfillment company can help monitor crucial shipments and ensure their schedules are met via proactive follow-up.
- Accurate supplier shipment manifests, provided via an Advance Shipment Notice (ASN) can ensure that incoming shipments contain the adequate quantities required to complete a production job. Pre-loading this ASN data into the warehouse management system (WMS) will also streamline the inventory receipt process and eliminate manual data input errors.
- Real-time inventory of packaging materials, quantities and sizes, will ensure that the post-production shipment process is smooth and timely.
- Especially during any delay in operational processes, overall visibility and real-time reporting capabilities are vital to assist customer service and management teams in their communication with the client.
In today’s competitive market, the fulfillment services company that can minimize disruptions to its supply chain will ultimately succeed. Supply Chain visibility is a key factor for this success but one that cannot be found in spreadsheet forms, filters and formulas.
Do you need to ramp up warehouse staffing for increased order fulfillment activity this holiday season? Getting the right short-term help is critical for a smoother holiday season. Read on for some hints for bringing in the right people for your 2011 holiday rush.
Before starting your hiring process, have a clear understanding of the type of help needed, how many hours are needed and when. Know your forecasted order counts and the number of orders your warehouse can ship per hour worked. These numbers will vary by account and product, making this a highly involved but critical calculation to master. Use this calculation to determine how many pickers, packers and shippers are needed to support your holiday order fulfillment needs.
When creating your job posting or working with a staffing agency, clearly communicate whether the position is temporary or may become permanent based on job performance. Make sure that the job posting is very clear about the warehouse location and any specific conditions such as limited heat, etc. Also make a clear list of job requirements, including the specific hours to be worked and any special requirements such as heavy lifting or knowledge of particular information systems.
If possible, always try to rehire temporary workers from a previous holiday season. This will reduce training time and will probably result in fewer mistakes than a brand new hire. If you currently have high-performing part-time employees, ask them to consider adding extra hours to support the holiday season.
A recommended approach for the interviewing process is to hold a five-minute phone interview before meeting with any candidates. This phone interview will allow you to clearly explain the job requirements and will hopefully give you a reasonable sense of the candidate’s enthusiasm about the job.
After the phone interview, bring in your selected candidates for an in-person interview and warehouse tour. Make sure that the candidate sees the business in operation to have a clear understanding of the job and an opportunity to ask questions.
When you have hired your temporary warehouse staff, provide them with adequate training and mentorship to ensure success. Ask a supervisor to check their work over the first couple of days to find and correct any problems early on.
We hope these hints may help your warehouse staffing process for the 2011 holiday season. To gain more order fulfillment perspectives or learn more about the fulfillment services provided by Fulfillment America Inc., visit our website to request more information.
On a typical day, your business receives orders from customers via your website, by regular mail, by telephone or email. The order goes to your warehouse for picking and packing, the shipping company is notified, and the order is shipped and billed and added to your management statistics for future analysis. You may also have promotional materials to be printed or updated and sent to various locations. If all this goes smoothly every day, with few problems or errors, it still may be costing too much. This is where an order fulfillment services company can help.
An order fulfillment services company can do all the above for you, and save you money besides. Using the economies of scale, they can receive your merchandise from the supplier, store it in a dedicated area in their warehouse, receive the order from your customer, pick the order and ship it to your customer. They can design and monitor your website, have the shopping cart orders go directly to them, and they can handle credit card approval and payment.
An order fulfillment services company will also provide sophisticated management information, so both you and the company will know what inventory items to store, and in what quantities. They can ship products less expensively, because of the volume they do with shipping companies. Their trained personnel will be dedicated to your company, from customer service representatives to Internet experts to warehouse personnel. The customer will believe they are dealing directly with your company, making the operation seamless. As you provide them with advance notice of shipments, they will have the warehouse space ready.
An order fulfillment services company will prepare all shipping documents, including those for overseas shipment. They will receive and inspect all merchandise returns, putting acceptable returns back into inventory and issuing a credit memorandum to the customer. They will update all specific shipping information for your customers, so the merchandise will be shipped in the form the customer requires.
Promotional materials, such as catalogs, price lists and sales brochures, have to be printed, put on the Internet and updated on a regular basis. By using a website dedicated to your company, your sales reps can update the information and have it go directly to a printer at the order services fulfillment company’s site. It can then be distributed in accordance with your instructions. The order services fulfillment company will store your promotional materials, and ship them as needed. Sophisticated statistical information will aid in forecasting usage.
An order fulfillment services company will review all procedures with you on a regular basis. They will monitor volume, turnaround time and accuracy. A cost-benefit analysis will assist you in deciding if an order fulfillment services company is the right solution for you. For more information, contact us.
For any new e-commerce fulfillment contract, there are many process steps that must take place between new client announcement and program go-live. But regardless of the product being fulfilled or the complexity of its operational processes, the basic steps that a fulfillment services company should follow for program implementation should always be the same.
The standard process in place at Fulfillment America involves just eight (8) high-level steps between new client announcement and go-live. A brief summary below:
- Prepare service agreement and contract.
- Assign implementation team, this should be a dedicated cross-functional team with a designated primary and secondary customer service contact for the client.
- Schedule project scope meeting with client, include key members of the implementation team to ensure all processes are reviewed and questions addressed upfront.
- Setup internal meeting (account review). This meeting should communicate all requirements of the client such as material logistics, inventory levels, specific data and reporting needs. The roles and responsibilities of all team members should also be confirmed at this time.
- Start IT requirements, dependent upon close collaboration between management and IT groups at both companies.
- Prepare warehouse to receive, store and manage all client inventory for the account.
- Setup account in ERP system, require customer service team members to review and verify all account information with the client.
- Test entire process with client, execute some sample orders – including exceptions processing such as returns and backorders.
While these 8 process steps clearly involve weeks or months of careful planning and execution, boiling the process into such simple steps is beneficial for several reasons. First of all, splitting the process into simple and tangible steps will ensure that all steps are followed in a clear-cut linear sequence with minimal risk of something critical being missed. Secondly, maintaining a consistent set of setup processes drives quality as continuous improvements can only be implemented for a standard set of documented processes. And finally, as team members repeat these setup processes, their experience will increase as they learn the questions to ask and the pitfalls to avoid – which will ultimately benefit the fulfillment services company and future clients alike.
To learn more about how Fulfillment America sets up a new ecommerce account, contact us for further information. Or download our free white paper outlining the Six Sigma methodologies in place at Fulfillment America and the benefit they bring.
If you are considering a switch in your fulfillment company, here are some points to consider and hints to aid the process.
First, identify potential fulfillment companies that are equipped to handle your business processes and are located in optimal geographical locations for your business. Prepare a thorough Request for Proposal (RFP) providing a high level of detail to better evaluate responses and use in later implementation. Evaluate all RFP responses and make your selection for fulfillment services partnership.
After the contract phase has been completed, shift to implementation and be prepared to involve a cross-functional team of operational, financial, and sales experts in the planning process. During the crucial months while transitioning from one fulfillment company to another, be ready to send a lot of data to your new fulfillment partner. Be prepared to supply:
- Demand history and sales forecast by customer and location
- Sales order information, such as average number of items per order, etc.
- Information about inventory requirements, material pallet quantities, size requirements.
After identifying the material to be transferred to the new warehouse, be sure to ask your new partner for their recommendations to minimize freight charges for the transfer. Also, don’t be afraid to ask your new fulfillment partner to split this material transfer expense.
Aim for zero downtime during your inventory transfer by adopting a phased transition approach. Transfer a representative inventory sample to your new fulfillment partner as you focus on systems integration and process setup in parallel. After all infrastructure and technical setup issues have been addressed, process a trial order through completion and, upon success, plan for the remaining inventory transfer and volume ramp-up.
A typical fulfillment company transfer takes 6 months from initial contact to full operational transfer. Contact Fulfillment America if you’re considering a switch and would like additional information about our service offering, including print-on-demand and ecommerce fulfillment.
Fulfillment customers must be able to trust their fulfillment services company to safeguard their crucial data assets. 
In fact, guarding personal and financial data may be even more vital than guaranteeing physical warehouse security. Insist that your fulfillment company assures superior data security by following these simple and logical guidelines.
- Store backup copies of electronic and paper documents in a secure off-site location.
- Implement an effective server and firewall infrastructure. Task someone to ensure that anti-virus software protections are kept current on the network.
- Mandate that all personal computers have their system passwords changed at regular intervals, monthly is ideal. This includes employee computers and any shared computers within the warehouse or office space.
- Train employees to logout of computers when not in use, this is particularly important for computers in shared or high public traffic areas.
- Have procedures in place to securely discard un-needed computer equipment and data (CD and paper shredding). It is recommended to outsource this function to a disposal specialist company.
- Use encryption measures to exchange data files with customers, PGP key technology is a good option.
If your fulfillment services company can show evidence that these simple guidelines are being followed, you should feel confident about the safety of your data and the infrastructure within which it is maintained. For additional information about the security practices in place at Fulfillment America, please visit our site and fill out a form to receive further information.
Fulfillment customers must be able to trust their fulfillment company to safeguard their valuable inventory assets. This can be accomplished by following some simple and logical guidelines for physical warehouse security.
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Require surveillance cameras that provide constant monitoring of all warehouse areas. 
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Setup a secure caged area for the most valuable or information-sensitive customer inventory. Restrict access to this secured area to minimal project-specific employees only.
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Install a security alarm monitoring system that is activated during non-business hours with a designated call list to management employees if the alarm is sounded.
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Have adequate exterior lighting to allow visibility to the warehouse and surrounding parking lots by law enforcement.
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Provide sufficiently heated/cooled environment for employee comfort as well as to support any specific inventory storage needs.
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Manage customer inventory carefully with an ongoing process of material control and oversight by designated project employees.
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Train employees to check for suspicious individuals and behavior, and to report and suspected problems to management employees.
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Conduct periodic training sessions and mandatory drills for fire emergencies, evacuations, and security breach scenarios.
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Make sure all warehouse visitors sign in and are escorted within the facility.
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Know the vendors that service the facility, ensure that they check-in with the front desk upon arrival and departure.
If your fulfillment company can show evidence that these simple guidelines are being followed, you should feel confident about the physical safety of your inventory. For additional information about the security practices in place at Fulfillment America, please visit our site and fill out a form to receive further information.